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ABSTRACT

The purpose of this study was to determine if Coconut Industry in Misamis Oriental had any tremendous effects on the Philippine economy. The Philippine Economy is very much affected in the decrease of Coconut Production. The Coconut Industry in Misamis Oriental went down and was generally due to lower rainfall condition. Investments were also affected due to the pourings of the coconut industry. The decline suggested that Coconut Industry in Misamis Oriental reduced so many productions such as copra, coconut oil and desiccated coconuts, which are the primary products of coconut. Other end-products were also affected such as detergents, shampoos, vinegar and nata de coco.

The coconut Industry in Misamis Oriental has a tremendous effect in Philippine Economy. These effects are of the investments and in exports, having a decline thus affecting seriously in the Philippine Economy.

The major sources of this study were on-line from the Department of Agriculture-Statistics and Economics division, from Mindnews.com, also from COCOFED which relates about the development of Coconut Industry. Some sources were gathered from books mainly about the situational report of Philippines.

The topic of the study is Economic Study of Coconut Industry in Misamis Oriental. The researcher got this topic since high school wherein he pursued to get the course in college for further study backgrounds regarding coconut industry and the economy.

The Coconut Industry in Misamis Oriental is a striking issue for it had a major role in the Philippine Economy. Before it declined its production, it gained the economy in Coconut Industry for it utilizes one of the major agricultural products which is coconut.

Statement of the Problem

The topic is Economic Study of the Coconut Industry in Misamis Oriental. It had a thesis statement which stands to the tremendous effects of Coconut Industry in Misamis Oriental to the Philippine Economy. The said statement was broken down to three guide questions; what is the status of Coconut industry in Misamis Oriental? , what are the effects to the economy? , and to what extent does the effects of Coconut Industry affect Misamis Oriental?

Significance of the Study

The importance of this study is to obtain a status report of the Coconut Industry in Misamis Oriental. It shows that the industry affected the investments and exports which led to the downpouring of the economy.

The researcher finds it important for further background of the said topic since he took up Agricultural Economics and it can be applied for additional inputs and future references. As an agricultural student, the topic could be of great help and a good reference for further studies. As for the teachers as well, this study could be of great aid to lectures touching up coconut industry and economics. Benefits could be obtained if one internalizes and applies what he/she learned from the study.

Scope and Limitation

The status, effects, and analysis of Coconut Industry were studied in this study. A small background of Coconut Production also played an important role in the study. The history of coconut industry and the strategies were of no reference in the study.

Method Used of the Study

At first, the researcher chose a topic but it was not simple for it took time and proper thinking. The topic was related to his course. He then proposed three topics, still related to his course. After the researcher had formulated the proposed topics, he then chose one among the three. He passed the topic and his teacher approves it. Narrowing of the topic was next after it got approved. After the narrowing of the topic, the researcher constructed a thesis statement out of narrowing and made three guide questions to support the topic. Gathering of resources, which is the working bibliography, was next and then note-taking follows which garners almost all of the time. I note-taking, it requires time and precise research for it contributes mostly in the body of the paper. The researcher gathered all the resources needed and proceeds to sentence outlining. Then the first draft, after the sentence outlining, was born. The first draft was checked by the teacher and got so many corrections. The researcher then furnished the first draft and became the second draft.

In making such term paper is never easy but all it takes is time, patience and commitment.

DISCUSSION OF THE PROBLEM

The researcher attempts to present his findings by answering the questions. They are as follows.

Question no.1 What is the status of Coconut �Industry in Misamis Oriental in

year 1 upto 00?

Coconut production constitutes one of the four major sectors of Philippine agriculture, the others being rice, corn and sugar. Coconut is planted in .7 million hectares, which accounts for percent of the total croplands, and 74 percent of commercial croplands. In comparison, sugar accounts for only 5 percent of croplands and 15 percent of commercial crops, while rice and corn account for 0 percent and 8 percent, respectively, of total croplands.

About 85 percent of coconut production is exported in the form of copra, coconut oil and dessicated coconut. Copra is the dried meat of the nut, with moisture removed by sun-drying, or by artificial drying. It is processed on the farm level, using simple manual tools and equipment. Coconut oil is extracted from copra through mechanical and chemical processes, using capital-intensive industrial equipment. Coconut oil is valuable as a raw material for a wide array of industrial commodities such us margarine and soap, as well as lauric acid or glycerine-based industrial chemicals. Copra meal (or pellets) is what remains after oil is extracted from copra. Dessicated coconut is the shredded or watered white kernel of mature nuts dried to make it edible for a longer period of time.

In the period before World War II, exports of coconut products accounted for about 0 percent of total Philippine exports. It rose to 5 percent of exports in the 150s and 160s, and dropped to about 0 percent in the 170s. In 17, export earnings from coconut products amounted to $878.5 million (coconut oil, $675.56 million; copra, $114.61 million; dessicated coconut, $88.18 million), accounting for % of Philippine export earnings. Coconut products in the 170s has been the countrys top raw-material export, followed by mineral and forest products.

Since the 10s up to the early 170s, about 61 percent of these exports were in the form of unprocessed copra; coconut oil and dessicated coconut accounted for about percent and 10 percent, respectively, of the value of coconut exports. In the beginning of 174 however, coconut oil has gradually accounted for the bulk of coconut-based exports. By 17, coconut oil accounted for 77 percent of the total value; copra 1 percent; and dessicated coconut, 10 percent. Other coconut products, such as coconut shell charcoal, coir (coconut fiber), and activated carbon, have accounted for only an insignificant portion of the value of all coconut products. Of the total value of coconut exports in the latter half of the seventies, percent went to the U.S., 46 percent to Western Europe, and the rest to the countries such as Japan and Russia.

About one-third of the Philippine population depends mainly on coconut production for its livelihood. In light of this, it is obvious that the coconut industry is of crucial importance.

The Philippines ranked rd in world production with the aid mostly from the Coconut Production from Misamis Oriental. Coconuts are grown as a major crop n many provinces, a total land area of more than million hectares is devoted to Coconut Production from 1 showed a decline of .4 percent (1.0 Million metric tons), this decrease in production may be due to prolonged effects of the El Nino Phenomenon (Eleazar, 000). 1 accounts to a total production volume of 10,504,06 metric tons; this figure is the lowest production. On a per island basis, Mindanao accounts to a 58.48 percent share of the total production in 1. As cited, improved rainfall brought about y the La Nina may cause an uptrend in production this 000 by as much s 45 percent.

The coconut production in Misamis oriental went down y 18 percent, from 48.8 Million nuts during the first quarter of 001 to 401.5 million nuts during the same period in 00. The sizable drop in production was due to the generally lower rainfall condition during the first quarter of 00 compared to that of the same period in 001. Misamis Oriental suffered the biggest decline by 1 percent, while Lanao del Norte, which contributed the highest (4%) to the total nut production of Region10, suffered only a 7 percent reduction in production. Consequently, the decline in mature nut production reduced copra production by also 18 percent, from 11,05 metric tons during the first quarter of 001to only ,755 metric tons during the same period in 00.Meanwhile, the demand for green nuts or buko grew by almost 6 percent, from.08 million nuts during the first quarter of 001 to .8 million nuts in the same period of this year. Lanao del Norte supplied 75 percent of the total consumption of the region during the 00 period.

Copra and whole nut prices were relatively higher during the first quarter of 00, compared to that of the same period in 001.Buying prices of copra and whole nuts were relatively higher during the first quarter of 00 compared to that of the same period in 001. The average farmgate prices of copra averaged P8.45/kg, an increase by P.7 (7 percent).

The decrease in Farmgate prices pushed down the total value of production for the 1st quarter of 00 to P1.106 billion which was 1 percent lower than the P1.77 billion in the same period last year.

Millgate prices also increased toP.6/kg for this year’s first quarter from only P5.06 of the same quarter last year (6 percent).On the other hand, whole nuts were bought at P./pc at farmgate during the first quarter of 00, higher by P0.8 ( percent) compared to P1.40/pc last year of the same period. At millgate, whole nuts were bought at P.75, higher by P1.5(14%) compared to only P1./pc of the same period last year.

CAGAYAN DE ORO CITY � Manuel G. Boniao, the chairman of the Palm Oil Task Force in Region X, was considering the establishment of a palm oil refinery in Misamis Oriental even as he expressed hope that the 00-hectare palm tree plantation in Balingasag town would be successful. He said that the establishment of a palm oil refinery here would help the country’s economy and help increase coconut oil production.

The Philippines is now importing coconut oil products after its coconut industry, once the envy of other Asian nations, could no longer sustain the demand for the product.

Boniao said that the task force was now focusing its attention on the plantation, the Bali Palm Multi-Purpose Cooperative, in Balingasag, which was established three years ago.

Studies have shown that 60 tons of fresh palm fruits can produce six to seven tons of palm oil. This is worth between P18,000 to P1,000 per hectare based on international market price of palm oil.

Question no. What are the effects of Coconut Industry to the economy?

DTI-monitored Investments

Investments poured into the region in the 1st quarter of year 00 amounted to P1.7 billion, a decrease of 5 percent, compared to the . billion of investments generated over the same period last year. The 46 percent and 1 percent increase in Bukidnon and Misamis occidental, respectively, fell short of the huge decreases in investments in Misamis Oriental, Camiguin and Lanao del Norte.

Bukidnon accounted for 6 percent of the total investments generated in the first quarter 00 with total investments valued at P1.1 billion mostly in the agri-based and trading sectors.

For Misamis Occidental, total investments for the period reached P million, which is a 1 percent increase compared to the total investments generated in the 1st quarter of 001 (P156 million). Most of these investments came from the agri-based sector (176 milliion).

Investments in Misamis Oriental reduced by 5 percent from P1,0 million in the 1st quarter 001 to the P5 million in the same period this year. The bulk of the decrease can be traced to the big reduction in business name registrations by about 5 percent. This brought the provinces share of the total regional investments to only percent.

Trading activities particularly the business name registrations formed the bulk of investments in Camiguin, which is collectively valued at P.6 million or almost 60% of the total generated investments of P4. million.

For Lanao del Norte, total investments for the period reached P 17 million, which is a decrease by 14 percent of total investments generated in 1st quarter 001 (P01 million). Most of these investments came from the trading sector (P 8 million), and in the infra and services sector, particularly construction and construction materials.

SEC-Registered Investments

Investments registered with the Securities and Exchange Commission-Cagayan de Oro Extension Office reached a total of P11.58 million during the 1st quarter of 00, a plunge by percent compared to the P141. million recorded in the same period of 001.

The decline was due to the zero investment for business expansion compared to the P1 million additional capital infused for business expansion during the 1st quarter of last year. New registrations, however, posted a 41 percent increase in the 1st quarter of this year, from P8. million in the 1st quarter last year to P11.584 million this year.

For the 1st quarter period of 00, Misamis Oriental, particularly, Cagayan de Oro City continued to receive the biggest share of the investments (88 percent of the regional total), Lanao del Norte got a 7. percent share while 4.8 percent went to Misamis Occidental.

Exports

Region 10s exports decreased by 1 percent in the first quarter of 00 compared to the same period last year. Among the reasons that can be gleaned from the data is the decrease in the export of the regions major products to Japan and Europe.

Among the major markets, only the USA posted an increase of 1 percent. The big decreases were experienced in Japan (-0 percent) and Europe (-50 percent). Since the major exports of the region go to these countries, movements in these markets greatly influence the export performance of the region.

Exports to asian markets, on the other hand, are showing strength as indicated in the increases in exports to Malaysia (154 percent), Indonesia (14 percent), Thailand (100 percent). Exports to chinese market are also picking up at percent.

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